188k personal injury settlement

donttellthewife

Hi all, looking for general thoughts and advice.

I've recently been awarded a health insurance settlement of 188k due to which I'm disabled and unable to work. The money has been paid into a personal injury trust as I'm in receipt of some government benefits to help with my care.
One condition of the trust is that I can't have more than 6k in a current bank account.
My wife works and were managing fine on her salary and I have no mortgage or debts.
We just can't decide what to do with the money to give me some income.
I've spoke to one independent financial advisor but he was only interested in selling a financial product, I'd like to know if this is the way to go or maybe buying property to rent out is a better idea?
Just looking to use the money to give me some income.
All thoughts would be appreciated

Stuart788

What government benefits can you claim if your partner is working?

donttellthewife

We qualify for help with my care as my wife's wage doesn't exceed the limit

Archi_Bald

Are you fit enough to be a landlord? Have you read up about BTL?

Stuart788

I assume they get income ESA so if he becames a landlord they couldn't keep claiming?

bigfreddiel

188k what exactly does that mean?

dawyldthing

£188,000 is what they mean. Id be careful. I wouldn't go into buy to let. Possibly put it into an account that can get you interest but there's not a lot out there. Even if you got 1.5% it would be enough to pay your council tax and a bit left over each year from the interest

Stuart788

But if they've more than £6,000 in the bank he can't get benefits.

Alice_Holt

Stuart788 wrote: »

What government benefits can you claim if your partner is working?

PIP - Info here
https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/pip/before-claiming/check-you-are-eligible/
Payments are made to help with the additional costs of a disability or chronic illness.
For many people claiming PIP, this benefit enables them to continue to work and participate in society.
Standard rate Daily Living PIP is £55pw. Subject to medical assessments. - http://www.benefitsandwork.co.uk/personal-independence-payment-pip/pip-self-test

Contribution-based ESA - Eligibility due to your NI record, only for individuals assessed as not fit for work. Only payable for a maximun of 365 days if you are placed in the WRAG Group.
https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/employment-and-support-allowance/before-you-apply-for-esa/eligiblility-for-esa/

Often paid when your SSP runs out. £73.10 in the assessment period. Also subject to medical assessments. See:http://www.benefitsandwork.co.uk/employment-and-support-allowance/start-the-esa-test

I have accorded you the courtesy of assuming your question was genuinely asked.
For households financially reliant on two wage earners, it can be devastating when one working partner suffers illness or disability - particularly if it happens to the principle wage earner. Maybe you have family / friends / colleagues who have been unlucky to suffer ill-health, and have seen this situation at first hand?

Other benefits for low income earners could include Tax Credits, Housing Benefit, and Council Tax Support.
And of course Child Benefit. Plus some individuals drawing a state pension will have working partners.

xylophone

Information about PI trusts is available on numerous sites including

http://www.markthompsonlaw.com/need-a-personal-injury-trust/personal-injury-trust-to-protect-personal-injury-compensation/

http://personalinjurytrusts.co.uk/frequently-asked-questions-faq/

The general advice seems to be that the Trustees should not make regular payments to the beneficiary and that the beneficiary and spouse should not jointly hold more than £6000 in capital in their personal accounts.

dawyldthing

But the buy to let money counts as income and paperwork wise they ask if you have a second home etc